A Stock with Low Risk but Good Upside Potential

In Saturday’s edition of Cabot Wealth Advisory, Paul Goodwin gave you an initial report on the second annual Cabot Investors Conference, which wrapped up last Friday. It was a good capsule summary, written on a tight deadline. (Paul likes to deliver right at his deadlines.)

But I have more to add, and whether this is the last word on the event or not depends largely on whether other Cabot analysts may feel compelled to share their own thoughts.

Here are my takeaways.

We have an awesome group of Cabot investors, intellectually thirsty and broadly experienced. Some are experienced, some are beginners, but they all enjoy it and are eager to learn more.

As for our analysts, while the diversity of the investment styles of our analysts is fairly clear, the color added by personal interaction with the analysts was priceless. The attendees loved sharing ideas with all of them, whether it was in Q & A sessions, on the schooner Fame or in the hotel bar.

For example:

Mike Cintolo of Cabot Market Letter and Cabot Top Ten Trader lives and breathes growth stocks and market timing. Mike relishes great growth stories, especially mass-market growth stories, but only when they’re backed up by strong financials and good chart set-ups.

Thomas Garrity of Cabot Small-Cap Confidential doesn’t care about charts at all, but he’s the most thorough researcher of little companies that I’ve ever known. And the ideas he comes up with are tantalizing, like a system that uses Wi-Fi waves to charge your mobile phone when it’s anywhere within range. Who wouldn’t want that?

Roy Ward of Cabot Benjamin Graham Value Investor is our value guru, with 400 columns of data on each stock, and specific Maximum Buy Prices and Minimum Sell Prices on 1,000 high quality stocks. Roy is as sober as a judge and his system is the Cadillac (can I say “the Tesla”?) of value investing systems.

Jacob Mintz of Cabot Options Trader and Cabot Options Trader Pro knows how to trade options and win, while controlling for risk every step of the way. He’s got a sharp mind and a sharp sense of humor to boot.

Chloe Lutts Jensen of Cabot Dividend Investor is our dividend expert. Her system steers subscribers to stocks that promise both rising dividends and capital appreciation, so if you buy early, you end up with a super stream of dividends. The second of my three children, Chloe is smart as a whip and I wish her grandfather could see what she’s contributing to the company he founded.

Nancy Zambell of both Investment Digest and Dividend Digest reads or skims 286 investment advisories a month (some of which publish many times in that month) to find the best investment for her readers. Nancy is a true professional, and a great public speaker.

Paul Goodwin of Cabot China & Emerging Markets Report is the master of bon mots, quips and anecdotes and he was a great moderator throughout the conference. He’s also the world’s greatest expert on hot Chinese stocks, which are flying high today. How far will BITA go?

As the head of Cabot, I respect all these successful investing systems, and it’s my mission to help people find the right system(s) for themselves. Personally, though, I love great growth opportunities, especially in companies that aren’t well known yet.

Three years ago, Tesla Motors (TSLA) was such a company, but today, it’s way too high profile. So at the conference, I mentioned a couple of new possibilities, focusing on one for my Top Pick.

No, I can’t tell you my top pick here, but I will tell you something very impressive.

At last year’s conference, six analysts made Top Pick recommendations.

Roy Ward, master of data, kept tabs on them throughout the year, and reported that the average gain of the six from then until now was an astounding 84.5%. The average!

That’s very impressive.

But even more impressive was the word that one of last years’ attendees bought LEAPS (long-term equity anticipation securities) on all six stocks and netted a gain of 300%!

I guess that paid for her conference!

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They Laughed When I Bought Tesla …

Last year, when we told our Cabot Top Ten Trader readers to back up the truck and buy Tesla with both hands, we got a lot of flak from my colleagues in the trading world.

But now that it’s handed our readers 600% profits, it’s no wonder why Cabot Top Ten Trader is considered Wall Street’s leading trading advisory.

As you’ll see in this week’s Cabot Top Ten Trader, our latest top 10 trades are no joke either.

(Also—and this gets a little technical—the stock also sports a new RP peak, meaning it’s performing better than the market. Pretty good for a food stock with a solid core business.)

If you’ve owned WWAV since my original recommendation, congratulations. You should hang on to most of it, but you should consider taking a little off the table here. As Tom Garrity says, “Pay yourself first.”

And if you didn’t buy it back when it was 27, you could buy it now.

But even better would be to go to the source of the original recommendation, Mike Cintolo’s Cabot Top Ten Trader.

For every stock recommended in Cabot Top Ten Trader, Mike gives a precise buy range, as well as a stop loss for controlling risk. So while you might get lucky doing it on your own, your odds are better if you follow Mike.
Details here

Cabot Wealth Advisories

We designed Cabot Prime for dedicated investors like you—investors who want to own the best stocks, collect the biggest profits, and lock in a rising source of income for life. With Prime membership, you get full access to nine of our top advisories and many members-only benefits, including free admission to our annual Investors Summit.

Cabot Benjamin Graham Value Investor uses the methods developed by the father of value investing, Benjamin Graham, and popularized by Warren Buffet. A system that works well in all markets, it buys stocks when they're dirt cheap, and sells when they've reached full valuation, a process that takes two years for the average selection. What's important here is buying only when a stock's price is below its Maximum Buy Price, holding through thick and thin, regardless of the news or the action of the stock, and then selling when the stock reaches its Minimum Buy Price. These are great stocks to own if you're a conservative stock investor. Chief Analyst J. Royden Ward explains clearly how to build a portfolio of stocks that meet his strict requirements-plus every issue includes updated rankings on his "Top 275 Value Stocks," so you can check on other stocks you may own.

Cabot Dividend Investor focuses on preparing for retirement, recommending a solid range of income-generating stocks, preferred stocks, REITs, MLPs, closed end funds and utilities, with particular emphasis on risk, dividend safety and dividend growth. If you’re retired or thinking about retirement, this advisory is designed for you. Cabot Dividend Investor’s proprietary Individual Retirement Income System (IRIS) will help you allocate your assets for capital appreciation, current income, growth and future income investments according to your retirement goals.

Cabot Emerging Markets Investor focuses on the emerging markets economies, with special attention paid to the BRIC (Brazil, Russia, India and China) investment landscape. You'll discover the value of international diversification and the profit potential of investing in countries whose economies are growing far faster than that of the U.S. All these stocks are traded on U.S. exchanges, usually as American Depositary Receipts. Under the guidance of Chief Analyst Paul Goodwin, Cabot Emerging Markets Investor was recognized as the top investment newsletter in 2006 and 2007 by Hulbert Financial Digest, and was rated by Hulbert as one of the top investment newsletters in every five-year period 2004 to 2011.

This flagship investment advisory has been published since 1970 and it is recommended for all investors seeking to grow their wealth. You’ll receive invaluable investing lessons, so that you won’t just become a more successful investor—you’ll become a wiser investor!

Cabot Options Trader’s Chief Analyst and options expert Jacob Mintz uses calls, puts and covered calls to guide investors to quick profits while always controlling risk. Beginners and experts alike can benefit from following Jacob’s advice. Whenever Jacob determines the time is right, he sends specific option buy and sell alerts via email and text-message for immediate action. He also sends out a weekly update with his views on the options market, open option positions and his outlook for the coming week.

Cabot Options Trader Pro’s Chief Analyst and options expert Jacob Mintz uses the full spectrum of option strategies to recommend the option that best suits the trade opportunity—calls, puts, spreads, straddles, iron condors and more—while always controlling risk. Whenever Jacob determines the time is right, he sends specific option buy and sell alerts via email and text-message for immediate action. He also sends out a weekly update with his views on the options market, open option positions and his outlook for the coming week.

Cabot Small-Cap Confidential is a limited-circulation advisory for investors seeking profit opportunities in high-potential small company stocks. Each month, small-cap expert and Chief Analyst Tyler Laundon features in-depth research on one outstanding small-company stock that is a pioneer in its field and undiscovered by institutional analysts. Updates on all recommended stocks are sent weekly. The circulation of Cabot Small-Cap Confidential is strictly limited because the stocks recommended are often low-priced and thinly traded. In the publication’s first five years, spanning 2007-2012, the average stock recommendation gained 30.5%.

Cabot Stock of the Week offers the very best of all Cabot stocks across the investing spectrum. Each stock is personally selected by Cabot’s President and most Senior Analyst Timothy Lutts, and guided by the collective wisdom of all the Cabot expert analysts. As a subscriber of Cabot Stock of the Week, you’ll build your wealth and reduce your risk with the single best stock each week for current market conditions among growth, momentum, emerging markets, value, dividend and small-cap stocks.

Designed for experienced investors, Cabot Top Ten Trader is your ticket to fast profits in stocks that are under accumulation now. Every Monday you’ll receive a one-page profile of each recommended stock, including fundamental analysis, technical analysis and buy ranges. Plus... each Friday, Chief Analyst Michael Cintolo will give you an update titled "Movers & Shakers," so you’ll always know his latest thoughts on these fast-moving stocks. Cabot Top Ten Trader is your best source of advice on investing in the market’s hottest stocks.

Yes, you can have Growth AND Value! Combining both growth and value in her growth-at-a-reasonable price strategy, Chief Analyst Crista Huff uncovers stocks with strong growth catalysts that are selling at attractive valuations—the stocks that are temporarily overlooked by mainstream analysts and institutions. Crista applies her stringent screens to deliver the best stocks in three portfolios: Growth, Growth & Income, and Buy Low Opportunities. A subscription includes monthly issues with weekly updates, special bulletins with market and stock alerts and email access to Crista.

Wall Street’s Best Dividend Stocks presents the best income investments from the top Wall Street analysts, researchers and advisors. Editor Nancy Zambell scours more than 200 advisories and research reports to select the top recommendations. Dividend recommendations include high yield, growth and income, REITs, mutual funds, ETFs and more. One Spotlight Stock is featured each month, along with Nancy’s insight on the market and updates on past recommendations. One top recommendation arrives in your email box each morning, and then gets collected into an easy-to-read digest of 30 to 35 top recommendations each month.

Editor Nancy Zambell scours more than 200 advisories and research reports to select the top recommendations by the top analysts. Selections run the full range of opportunities: growth stocks, value stocks, technology, small-caps, biotech, pharmaceuticals, mutual funds, ETFs and more. One Spotlight Stock is featured each month, along with Nancy’s insight on the market and updates on past recommendations. Thirty-plus recommendations are delivered to you in Daily Alerts directly to your email box, and collected in an easy to read digest each month.

Reviews

“Good results are the true test of any newsletter…I have been trading exclusively using Cabot, and the results have been very good. I tried picking stocks on my own in the past, but results were not good. I don’t have a background in investments, so having assistance and guidance from Cabot has been the key to turning my investments around to success.”

Market Update

From Cabot Dividend Investor

The market continues to lean bullish, with warning signs. While the Dow has been hitting all-time highs, the S&P has gone nowhere for two weeks and the Nasdaq has actually lost ground. Investors seem to be deserting “risk-on” assets, leading to underperformance in the Russell 2000 (IWM) and high-growth sectors including Semiconductors (SMH) and Biotechs (XBI).

On an individual stock level, earnings reactions have been leaning negative. Companies that disappoint are punished severely, while companies that beat are rewarded weakly, if at all.

Meanwhile on the fixed income side, Friday’s hot payrolls report increased inflation expectations and drove bond yields higher over the weekend. But yesterday’s North Korea panic drove investors out of stocks and into conservative assets, driving bond yields lower once again. “Risk-off” classes, including utilities, benefited.